"IIRC LOOP was used in some software for timing loops; there was (important) software that did not work on CPUs where LOOP was too fast (this was in the early 90s or so). So CPU makers learned to make LOOP slow."

"(My opinion: Intel is probably still making it slow on purpose, and hasn't bothered to rewrite their microcode for it for a long time. Modern CPUs are probably too fast for anything using loop in a naive way to work correctly.)"